Oaks on Edge as suitor enters surprise bid

The struggle for control of the embattled Oaks Hotels & Resorts Group took another twist yesterday after a Singapore-based company made an unexpected $104 million takeover bid for the hotelier.

Edge Equity Investors, an investment firm focused on the hospitality industry, is hoping to unseat rival Oaks suitor Minor International by appealing to the Takeovers Panel to reverse a recent share acquisition that delivered the Thai conglomerate a controlling 34.4 per cent stake in the Brisbane-based hotelier.

In the past few days a flurry of purchases has lifted Minor’s ownership of Oaks to more than 60 per cent.

It is unclear whether this fresh approach will succeed as Minor intends to fire Oaks’ directors at an emergency general meeting next Friday.

However, it provides another surprising development in this long-running buyout saga as it comes just days after Retail Food Group, the franchisor behind Donut King and Michel’s Patisserie, withdrew a $94 million proposal for Oaks.

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RFG cited the decision to bow out of the race on the regulatory approval granted to Minor for its acquisition of the parcel of shares sold by receivers PwC. Both RFG and Edge participated in this bidding war.

Earlier this week Oaks’ board issued a statement to the Australian Securities Exchange urging investors to accept Minor’s $90 million buyout offer.

Last Tuesday Colin Archer, a director of both Oaks and of failed bidders RFG sold his 3.5 per cent stake in the hotelier to Minor for 52¢ a share.